Quick Guide to Brexit for Small businesses

Small Business Advice

Nov 17,2017

◴ 2 min

Small Businesses will need to take steps to ensure that they are prepared for Brexit. Here is the most important issues that small businesses will have to prepare for.

Currency Effects

Most small businesses will be affected by the currency effects of Brexit
As the pound devaluates, costs increase
Currency effects that have been experienced have not been largely disruptive
Predict currency calculations ahead of the time to gauge effects on your small business

Free Trade Effects

If the UK leaves the EU with no free trade agreement there will be large costing and logistics effects
Large amount of new paperwork may be involved with importing goods
Look at your logistics needs and make contingency plans if you are reliant on the import of goods solely from the EU
Still unclear if a transition phase to help businesses will be implemented

Migration Effects

Rights of EU nationals is still being debated
Top of negotiating list between UK and EU
Most significant effect will be for seasonal workers and professions where there are skill shortages such as nurses and doctors
Small businesses that employ EU seasonal workers should prepare for this eventuality

Contingency Plans

Contingency plans should be prepared and put in place if there is a ‘no deal’ Brexit
Examine most crucial areas that will affect your small business and make plans
Make contingency plans for soft, hard and no-deal Brexit for all the risk factors mentioned above

Jahan Aslam

With 20+ years of experience, supporting businesses at every stage of their journey, they offer practical advice on UK accounting, taxation, company formation, and financial planning, helping entrepreneurs build and grow successful businesses.

Frequently Asked Questions

How could Brexit affect small businesses in the UK?

Brexit may affect small businesses through changes in currency values, trade arrangements, import costs, regulations, and access to workers. Businesses should review potential risks and prepare plans to manage any changes.

How can Brexit impact small business costs and currency exchange rates?

Changes in the value of the pound can affect the cost of importing goods, purchasing supplies, and dealing with overseas customers. Small businesses should monitor currency changes and consider how exchange rate fluctuations may impact their finances.

What should businesses that import goods from the EU consider after Brexit?

Businesses that rely on EU imports should review their supply chains, prepare for possible customs requirements, additional paperwork, increased costs, and potential delays. Creating alternative supplier and logistics plans can help reduce disruption.

How could Brexit affect small businesses that employ EU workers?

Changes to immigration rules may affect businesses that rely on EU workers, particularly industries with seasonal roles or skills shortages. Employers should stay updated on workforce requirements and consider recruitment plans to address potential staffing challenges.

Why should small businesses create Brexit contingency plans?

A Brexit contingency plan helps businesses prepare for different scenarios, including changes to trade rules, costs, staffing, and supply chains. Planning ahead can reduce risks and help businesses continue operating smoothly during periods of uncertainty.

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